On June 1, 2007, Standard&Poor's Ratings Services revised its outlook on Dutch diversified technology group Koninklijke Philips Electronics N.V. (Philips) to stable from positive, reflecting our expectation that Philips will, over time, more fully avail of its very significant financial flexibility. At the same time, Standard&Poor's affirmed all its ratings on the group, including the 'A-' long-term and 'A-2' short-term corporate credit ratings. The outlook revision reflects the lower potential for a rating upgrade over the near term. We believe that there is a meaningful possibility that Philips will seek to take advantage of its financial flexibility in a more proactive manner, in line with its current strategy. This could be either to expand and grow
